Bengaluru and Gurugram are among the top 5 preferred destinations in Asia-Pacific region to set up offices by technology companies for having better business conditions as well as the availability of engineers and real estate for growth, according to a report.
In its report, property consultant CBRE said that technology companies continue to fuel office demand in the APAC region, despite the absence of any principal city or cluster of the same status as Silicon Valley. It said that the technology sector accounted for 23 percent of total leasing activity in 2018.
The study has ranked 15 cities in the Asia Pacific region based on three factors, that are- business conditions, innovation environment, and cost and availability.
While business conditions and innovation environment were each given a weightage of 40 percent, cost, a relatively less important consideration for tech firms, was given a 20 percent weightage.
"Leading cities are Beijing, Bengaluru, Shanghai, Singapore and Gurugram. These cities score highly in terms of business conditions and innovation environment, as well as providing costs and availability that are supportive for business growth," the report said.
These cities are preferred destinations for a wide range of traditional and new tech companies seeking to establish a base of operations in Asia Pacific.
Another Indian city, Hyderabad, was in the list of five competent cities along with Hangzhou, Shenzhen, Tokyo and Seoul. These cities already host tech industry sub-sectors and demonstrate solid performance across most categories.
"India is home to an increasing number of tech unicorns and Asia Pacific is increasingly defined as the region leading in the rapid adoption of disruptive technology," the report said.